A lackluster employment report sent stocks tumbling Friday on news that U.S. employers added just 88,000 jobs in March, the fewest in nine months.

The nation's unemployment rate dipped to 7.6 percent, the lowest in four years, from 7.7 percent in February. But that was only because more people gave up looking for work.

The numbers reflect a pulling back among employers as they navigate a still-fragile economy.

The Dow fell as much as 171 points in early trading, but later trimmed that loss to 41 points to close at 14,565.

March's employment gain was far less than the 180,000 to 200,000 jobs economists had expected and it was well below the average of 196,000 jobs added in the previous six months. But job creation for the prior two months was revised upward. January went from 119,000 to 148,000 jobs added and February jumped from 236,000 jobs to 268,000, the Labor Department reported.

Still, when the under-employed and others who have given up looking for work are figured in, March's jobless rate of 7.6 percent is actually closer to 15 percent, experts say.

The percentage of working-age adult Americans who either had a job or were looking for one sank to 63.3 percent in March, the lowest level in nearly 34 years.

Jordan Levine, an economist and director of economic research for Beacon Economics in Los Angeles, cautioned against placing too much weight on the March numbers.

"We don't put too much stock into any specific number," he said. "If you look at the broader trend we still have over 150,000 jobs added a month. We've been seeing a recovery. The pace is nothing to write home about, but there is always a churn with new firms coming online and existing companies shedding jobs."

Levine also noted that the labor participation rate - those working or looking for work - contains built-in "structural elements" that skew the numbers. The variables include aging baby boomers who are retiring and others are may simply be missed on job reports.

"There are a lot of people doing informal work who are not showing up on someone's payroll, and others who are just doing their own thing off the books," he said.

Friday's report was punctuated by St. Louis-based CPI Corp.'s announcement that it has closed more than 2,000 of its portrait studios that are found nationwide in Walmart and Sears stores. The company didn't say how many jobs will be lost.

"After many years of providing family portrait photography, we are sad to announce that all of our U.S. portrait studios are now closed," a statement on the company's website said. "We appreciate your patronage and allowing us to capture your precious memories."

Closer to home, Anaheim electric car maker Fisker Automotive laid off most of its staff on Friday - about 160 employees. The company is struggling with financial and production problems.

Fisker confirmed the layoffs in a statement on Friday, saying it is pursuing "strategic alternatives" to get through its financial challenges.

"The company regrets having to terminate any of its hard-working and talented people," the statement said. "But this was a necessary strategic step in our efforts to maximize the value of Fisker's core assets."

Layoffs also appear to be brewing at The Walt Disney Co. The Web site Seeking Alpha and others have also reported that the Burbank-based company plans layoffs in its marketing, home video and animation divisions after CEO Bob Iger ordered an internal audit to find ways to cut costs.

The company didn't release specific figures but the development is another indication that Disney segments that don't keep up will be trimmed, the site said.

The news hasn't been all bad.

John Boesel, president and CEO of CALSTART, a Pasadena-based consortium that promotes clean energy technologies, said Tesla Motors now has 4,000 jobs in California. Tesla also makes electric vehicles.

"That's a real sign of progress because a few years back GM and Toyota closed down a plant in Fremont that they jointly operated," he said. "There are some bright spots, but we're still not seeing the kind of growth we'd like to see in the overall economy."

The nation's biggest employment gains for March came in professional and business services, which added 51,000 jobs. Over the past 12 months that sector has grown by 533,000 jobs, the Labor Department said.

Health care added another 23,000 jobs and construction boosted its payrolls by 18,000 jobs. Construction suffered heavy job losses in the face of the nation's housing downturn, but that industry has added 169,000 jobs since September.

Associated General Contractors of America said its analysis of the government data showed that construction employment rose for the tenth consecutive month in March and was above 5.8 million for the first time since September 2009.

But the industry's unemployment rate was a still high 14.7 percent in March, the association said. Construction employment peaked at 7.7 million in April, 2006, the group said.

"I think the growth rate in construction jobs over the last year has been stronger that the overall economy, but the industry still has a long way to go," said Ken Simonson, the association's chief economist.

In the leisure and hospitality sector, food services and drinking places added 13,000 jobs in March and a total of 262,000 over the past year. But the nation's retail trade sector lost 24,000 jobs, a significant decline for an industry that added an average of 32,000 jobs per month during the previous six months.

U.S. postal employment shrank by 12,000 in March and employment in other industries - including manufacturing, wholesale trade, transportation and warehousing - was virtually unchanged.

A local jobs report last week showed that California added 41,200 jobs in February and its unemployment rate fell to 9.6 percent - the lowest level since December 2008.

Los Angeles County added 39,000 jobs in February and 89,400 year over year. The Inland Empire added 2,900 jobs in February and 27,500 over the year.

Other figures released this week by Generation Opportunity, a nonpartisan advocacy group, reveal that the March unemployment rate for Americans ages 18 to 29 was 11.7 percent.

The jobless rate among blacks ages 18 to 29 was 20.1 percent in March. The rate for Hispanics in that same age bracket was 12.6 percent, and the rate for women was 10 percent.